Private limited company (Ltd) vs Sole trader: tax comparison 2026
Compare the tax burden of the two legal forms with your own numbers, using each calculator below.
| Private limited company (Ltd) | Sole trader | |
|---|---|---|
| Description | Corporation tax 19% (<£50k) / 25%; dividends 8.75/33.75/39.35%. | Real income taxed at income tax 20/40/45% + Class 4 NIC. |
Official sources
- HM Revenue & Customs (HMRC) — Corporate & personal income tax